Exam 11: Investment Planning

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -[Investing | Speculating] is viewed as a short-term activity that involves the buying and selling of securities in which future value and expected return are highly uncertain.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -The Securities and Exchange Commission was established as a result of the [Securities Act of 1933 | Securities Exchange Act of 1934].

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -The single most important reason for investing is for [home purchase down payment | retirement].

The total return of a portfolio is influenced far more by specific security selection than asset allocation in the long run.

The securities market which you could not locate on the map is the:

Unlisted securities are traded on the:

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -[2,000 | 148,800] shares of ABC stock were traded on this day.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Before you start investing,you should plan to have a minimum of [$1,000 | $15,000] available.

Owning common stock represents a debt investment.

What was the closing price of Stock C on the previous trading day?

When you sell a security at OTC,you will receive the:

You have just bought 100 shares of ABC Corporation common stock at 70.50.The commission is calculated as 1.5% of the total value of the transaction plus $30.What commission will you be charged and how much must you pay the broker for the entire transaction?

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -Short term securities are traded in the [money | capital] market.

Brokers charge a commission on security purchases as well as on security sales.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -You would expect to receive an annual dividend of [$0.16 | $0.70] per share.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -The owner of a bond would expect to receive [steady | variable] annual income.

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -The [broker | dealer] market is made up of both the NASDAQ market and the OTC market.

Securities sold in the primary markets are usually handled by a(n):

The NYSE index includes all stocks listed on the "Big Board."

Choose the word or phrase in [ ] which will correctly complete the statement.Select "a" for the first item,"b" for the second item,and "c" if neither item will correctly complete the statement. -ABC stock is [up 14.1% | down 27%] since the beginning of the year.